Two investment firms are establishing branches in Hong Kong to attract investments from the region, demonstrating increased financial activity in the city after government measures to protect its financial status.

Ardian SAS, based in Paris, is opening an office in response to growing demands from clients such as Chinese family offices. The firm aims to be closer to sovereign wealth funds and insurers in the region. Ardian's Hong Kong office will be its fifth in Asia, complementing locations in Seoul, Tokyo, Beijing, and Singapore. The company currently has approximately 14 employees across its existing Asia offices.

Investors globally are showing more positive sentiment towards China, as seen in the 18% year-to-date increase in the Hang Seng index in Hong Kong. Nonetheless, some long-term investors remain cautious, waiting for signs of a sustainable market uptrend in China. There is some hesitance among asset allocators to invest in China-focused private equity and venture funds due to concerns about exits.

Arga Investment Management LP, based in Stamford, Connecticut, is also planning to establish an office in Hong Kong to tap into opportunities in the region. The firm, managing $19 billion in assets, serves clients like family offices, pensions, and endowments. Arga's expansion into Hong Kong would mark its fifth office, joining its existing locations in the US, UK, and India. Efforts to reach Arga for comments were unsuccessful.